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Consider the Following Data for Three Divisions of a Company

question 9

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Consider the following data for three divisions of a company, X, Y, and Z:
 Divisional:  X  Y  Z  Sales $1,800,000$900,000$4,800,000 Operating Income 252,000108,000240,000 Investment in assets 630,000540,0003,000,000\begin{array}{lrrr}\text { Divisional: } & \text { X } & \text { Y } & \text { Z } \\\text { Sales } & \$ 1,800,000 & \$ 900,000 & \$ 4,800,000 \\\text { Operating Income } & 252,000 & 108,000 & 240,000 \\\text { Investment in assets } & 630,000 & 540,000 & 3,000,000\end{array} The asset turnover (AT) for Division X is (rounded) :

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, leading to competition based on price, quality, and branding.

Limited Market

A market situation characterized by restricted customer base, geographic reach, or size, limiting the potential sales of a product or service.

Average Total Cost

The total cost divided by the quantity of output produced; a measure of cost per unit of output.

Maximum Profit

The highest possible financial gain that a firm can achieve from its operations.

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